How Do You Create a New Code in Xero?

Creating a new code in Xero is a simple process that involves using the Chart of Accounts feature. Here's how you can do it:

1. Log in to your Xero account.
2. Navigate to the "Accounting" menu.
3. Click on "Chart of Accounts".
4. Select "Add Account" from the top-right corner of the screen.
5. Choose the account type. This could be an asset, liability, equity, revenue, or expense account.
6. Enter a unique and descriptive code for your new account.
7. Provide a name for the account.
8. Select the appropriate tax rate.
9. Click "Save" to create your new account.

Example:

Let's say you want to create a new code for "Marketing Expenses". Here's how you would do it:

1. Account Type: Expense
2. Code: MKTEXP
3. Name: Marketing Expenses
4. Tax Rate: 0% (or the applicable rate for your region)

Practical Insights:

• Use a consistent coding system. This will make it easier to find and manage your accounts.
• Keep your codes short and descriptive. This will help you understand what the codes represent.
• Review your codes regularly. As your business grows, you may need to add or update your codes.